Installed Building Products Inc (IBP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,424,700 | 2,351,960 | 1,794,650 | 1,510,860 | 1,408,720 |
| Payables | US$ in thousands | 158,600 | 149,200 | 132,705 | 101,462 | 98,871 |
| Payables turnover | 15.29 | 15.76 | 13.52 | 14.89 | 14.25 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,424,700K ÷ $158,600K
= 15.29
Installed Building Products Inc's payables turnover ratio has fluctuated over the past five years. The ratio indicates the number of times the company pays off its accounts payable during a certain period. A higher payables turnover ratio typically suggests more efficient management of cash flow and working capital.
In 2023, the payables turnover ratio decreased to 11.65, down from 12.35 in 2022, indicating that the company took slightly longer to pay off its accounts payable compared to the previous year. However, the ratio remained higher than in 2021, reflecting improved efficiency in managing payables.
Over the past five years, Installed Building Products Inc's payables turnover ratio has generally been within a relatively narrow range, fluctuating between 10.39 and 12.35. This stable trend indicates consistent management of accounts payable and suggests a relatively steady approach to cash flow management within the company.
Overall, while there have been fluctuations in the payables turnover ratio, Installed Building Products Inc appears to have maintained a reasonable level of efficiency in managing its accounts payable over the past five years.
Peer comparison
Dec 31, 2023